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Hard money lending: Opportunities and risks

Oct 06, 2008

New Penn Financial acquires Stenton Mortgage and Universal Trust Mortgage AssetsMortgagePress.comacquisition, FHA loans, New Penn Financial, New Penn Financial LLC has announced its recent acquisitions of Stenton Mortgage, a retail mortgage banking company located in Plymouth Meeting, Pa. and the assets of Universal Trust Mortgage, a 12 year old retail Mortgage Broker with 45 employees, in Columbia, Md. With these two acquisitions, both of whom specialize in FHA mortgage loans, New Penn Financial has expanded its capacity of originating FHA mortgage loans to serve the unmet demand of this market because of the disruption in the mortgage industry. This acquisition comes at a time where FHA loans are at an all time high. According to Inside Mortgage Finance, the percentage of FHA loans has grown to 23 percent in July 2008, up from 1.8 percent in 2006 [of the overall mortgage market]. "While other mortgage companies are shutting down or reducing operations, New Penn Financial has increased to almost 100 employees with additional growth planned over the next several months," said Jerry Schiano, president and CEO, New Penn Financial. "Additionally, we believe FHA's share of mortgages will continue to grow at a dramatic pace and, with our FHA expertise and increased loan origination capacity, we are well positioned to meet this growing demand while remaining committed to offering the right long-term product to each of our customers." In addition to offering mortgages directly to consumers, New Penn Financial has launched two other growth channels. The first channel is designed for mortgage and investment companies that service their own mortgage loans. Working with these companies, New Penn Financial offers its analytical capabilities, FHA expertise and ability to identify the appropriate loans for consumers to improve their client's portfolio performance by refinancing their customers into more appropriate loans. The second channel, an Affinity program, is designed for regional and local community banks and credit unions that want to offer FHA mortgage loans to their customers to capture this growing revenue source but are not FHA approved lenders. The Affinity channel will roll out this fall with a fully dedicated office in Charlotte, N.C. For more information, please visit www.newpennfinancial.com.
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